Refer to the budget line shown in the diagram. Which of the following combinations of goods is unattainable for this consumer?
What will be an ideal response?
4 units of C and 6 units of D
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Which of the following statements is true?
A) GDP growth distributes income equally to people in the economy. B) GDP accounting rules do not adjust for production that pollutes the economy. C) A decrease in the crime rate increases GDP as people will spend more on security. D) Household production is counted in GDP as it amounts to real production.
Jamie's marginal utility from muffins and from doughnuts (in utils) is shown in the accompanying table. Jamie spends a total of $8 on muffins and/or doughnuts every morning. The price of each muffin is $2 and the price of each doughnut is $1.MuffinsPer DayMarginal UtilityPer MuffinDoughnutsPer DayMarginal UtilityPer Doughnut140220230415320510 If Jamie consumes 2 doughnuts a day, then what is her marginal utility per dollar spent on the second doughnut?
A. 15 B. 40 C. 10 D. 20
April lives in a heavily Democratic voting community. Every election, the Democratic candidates win by a large margin. Since April believed that she already knew what the outcome would be, she has not sought out candidate information or voted for the past few elections. Ben tells her she has displayed rational ignorance. What does Ben mean?
a. April is really showing a lack of intelligence by not getting involved. b. From April’s perspective, it makes sense not to waste her valuable time voting. c. April is not a mind reader and does not really know who will win the elections. d. April likes to make excuses and rationalize her inaction on important matters like voting.
The lack of investment in developing countries is at least in part attributable to:
A. high levels of foreign aid. B. low levels of domestic savings. C. inappropriate education. D. overpopulation.